Bitcoin Siege: Showdown at $25,000 May Bring Bull Market
- Bitcoin is attempting to break through its most important resistance level of $25,300.
- China has injected CNY 500 billion into its markets to boost liquidity, leading to a positive boost for the crypto market.
- Money sitting on the sidelines could be deployed if bitcoin breaks through this level in the near future.
Bitcoin’s Showdown with Resistance
Bitcoin is facing an important resistance of $25,300 which it must break through in order to decisively announce that the long awaited bull market is here. Last Thursday saw the start of this ’siege‘ when bitcoin attempted to break through this level. Since then, it has consistently been attacking this fortress and making small steps towards breaching it. This Monday has seen yet another approach.
In technical analysis, repeated attempts at a level weaken it before eventually being breached. However, if these attacks become weaker, bitcoin could drop back down to lower levels again. If successful though, and bitcoin manages to remain above this all-important point for some time with good few daily candles above it, then we can expect rapid rise up towards $28,000 and beyond due to almost no further resistance. There is also support forming around $24,000 with five touch points as of today’s attempt at breaking resistance.
China Boosts Crypto Market
The Chinese central bank recently injected CNY 500 billion into its markets in order to increase liquidity which in turn has given the crypto market a positive boost. Many of the Chinese-based cryptocurrencies have been running due to this and overall there seems to be renewed impetus coming from China for Bitcoin and other cryptos alike.